Chapter 2 Notes: Restaurants and Their Owners
Top 400 Segment Ratings
Ranking Concept Sales
1 Burgers $102,132,100,000
2 Casual dining $27,152,900,000
3 Sandwiches/bakery $25,053,200,000
4 Coffee/tea/donuts $19,835,600,000
5 Family dining $14,797,200,000
6 Mexican: limited service $10,512,100,000
7 Seafood: full service $6,080,600,000
8 Mexican: full service $1,706,200,000
Chain
Advantages: recognition, greater advertising clout, sophisticated systems development,
discounted purchasing
Independent
Advantages: relatively easy to open, “do their own thing,” plenty of room in certain locations,
buy out by larger companies, acquire financing for expansion
Franchised
Less likely to go belly-up
Franchisors will need to know if you:
oShare values, mission, ways of doing business
oHave been successful
oPossess motivation to succeed
oHave enough money to purchase and operate
oHave the ability to spend time on franchise
oTraining from the bottom up and all areas of the operation
Franchising involves building design, menu and marketing plans, marketing tested/proven
concepts, training provided, marketing and management support, franchising fees, royalty fees,
advertising royalty, and requirements of personal net worth
Sandwich Shops
Simple to open and operate
Little or no cooking required
Limited kitchen equipment needed
Quick Service
1870s: Plate House – first known quick-service restaurant
Many precook or partially cook food
Goal is to serve maximum number of customers in a minimum amount of time
Food is paid for before service
Limited menus
Pop-Ups
Appear only for a few days / people keep track via social media
Challenges include ordering the right amount of food
Concept started in London
